Israeli Firm to Pay SEC Over Bribery Allegations

Elbit Imaging Ltd. agreed to pay $500,000 to the U.S. Securities and Exchange Commission to settle charges the Israel-based real-estate and medical-technology company violated accounting-related provisions of the Foreign Corrupt Practices Act.

Elbit and Plaza Centers, a subsidiary Elbit controls, paid millions of dollars to third-party consultants and a sales agent for services related to a real-estate project in Romania and the sale of a large U.S. property portfolio, the SEC said Friday.

"Elbit and Plaza made these payments even though they lacked evidence that the consultants and the sales agent had actually provided the contracted-for services," the SEC said.

The companies failed to implement accounting controls to keep the money from being embezzled or used for bribes, the agency said. The companies failed to record the payments in their accounts in a way that reflected their true nature, the SEC said. The FCPA bars the payment of bribes to foreign officials to get or keep a business advantage.

Elbit offered to pay the money without admitting or denying the SEC's findings, the agency said. In agreeing on the amount, the SEC said it took into consideration Elbit is in the process of winding down its operations by selling its assets and that it reported the third-party payments and cooperated with the investigation.